X-CAPM Revisited: The Institutional Extrapolative Capital Asset Pricing Model (I-X-CAPM)
Semen Son-Turan and Erdem Kilic
This study constructs and tests a consumption-based asset pricing model in which some investors form beliefs about future price changes in the stock market by extrapolating past price changes, while other investors hold fully rational beliefs. The contribution of the present work is the inclusion of institutional investor bias. As such it extends theory. But it also conducts econometric tests by using daily survey data on individual and institutional investors’ sentiment on the current economic situation and their future expectations. Empirical findings may imply that institutions’ sentiment reverts quicker to the equilibrium price than individual sentiment, at least with regard to their beliefs on future economic outlook. If studied further with a bigger dataset, it may imply that institutional investors are closer to the rational-decision making mechanism compared to individual investors. The theoretical framework rests on prospect theory. The market studied is the US equity market, however findings and suggestions can be applied to global markets and various financial instruments.
Keywords: Investor Bias, Behavioral Finance, Institutional Investors, Capital Asset Pricing Model, Extrapolation
The Interface between Organizational Capabilities and Leadership: How Leadership Relates to the Process of Responding to a Changing Environment through Dynamic Capabilities
The purpose of this study is to observe the process of responding to a changing environment through dynamic capabilities. The study is focused particularly on cooperation at the organizational site level and on leadership. Dynamic capabilities include the inherent capabilities of a firm’s executive management as well as the organizational capabilities process including leadership of the firm. The factor of leadership is important both theoretically and empirically, as a microfoundation of dynamic capabilities as organizational capabilities. The framework of the study shows that dynamic capabilities, organizations, and leadership have a close theoretical relationship. To demonstrate that the theoretical relationship was also empirically valid, a case study of a Japanese firm is referred to describe the interface between leadership and the environmental adaptation process in an actual cooperation situation. The findings are that shared leadership and situational leadership facilitate the coordinated work in the activity process and play a significant role in making use of organizational capabilities. The research implies that we must reconsider the process of manifesting organizational capability in today’s Japanese companies from the aspect of coordinated workings of each organizational member and leadership rather than the inherent capabilities of a firm’s executive management. The originality of this research is that it highlights shared leadership in the organization’s adaptation process as strategic factor both theoretically and empirically as a microfoundation for dynamic capabilities of the firm.
Keywords: Dynamic Capabilities, Shared Leadership, Situational Leadership, Cooperation Processes, Site Organization
A Study of the Relation between the Changes of Working Style with IT Use and the Employee’s Work-Life Balance
The purpose of this study is to observe how the change of employee’s working style with using IT and other work environmental factors affect their work-life balance. In recent Japan, many companies have introduced some HRM (Human Resource Management) programs that support employee’s work-life balance since their working style has been diversified in these years. However, not few Japanese employees still think that those HRM programs (for example maternity leave, childcare leave, discretionary labor system etc.) are difficult to take or they feel awkward to take it as a right or they think those supportive HRM systems are useless since their workplace are still strongly based on very tight team work organization and too busy to leave their team for their private matter. They often feel as if they are guilty to leave the workplace for their personal circumstances. There are some reasons why it is difficult for Japanese employees to maintain their balance of work and private life. It is caused by Japanese unique situations, for example, a yet strong division of labor by gender role, very long working hours, relatively ambiguous job boundaries etc.) Some Japanese companies have been trying to redesign their jobs and their working styles with using IT systems. Other factors to be considered are their work environment circumstances such as the office atmosphere and relationships with colleagues. The paper focuses on the effects of changing Japanese employees working styles using IT, work environmental factors and employee’s comfortability to take HRM programs for their work-life balance. A survey research was used to confirm the correlations between the working style changes, work environmental factors and employee’s comfortability of taking HRM programs. The finding is that there are positive correlations between the changes of working style by using IT, relationship with colleagues, office atmosphere and employee’s comfortability to take HRM programs for their work-life balance.
Keywords: Work-Life Balance, Change of Working Style, IT, HRM, Comfortability
Relationship between the Principles of Organization and Requirements of Global Leaders
With progress of globalization in economics and rise of protectionism recently, the importance of global leaders is increasing and the circumstances for global leaders are getting more difficult in international management. In academic, global leader has been discussed mainly in the United States and it seems to be believed universally as so-called “global standard” practice in Japan. However, my prediction is hard to believe it straight away, especially for Japanese companies because there are wide ranges of different situation between for global leaders in United States companies and for the Japanese companies. So, we conduct quantitative research on Japanese companies to see the situation for global leaders and I treated principle of organization as the circumstances for global leaders. The result is to show the other situation precedent for global leaders in Japanese companies against previous research. It suggests the possibility of another type of global leader against universal type of global leader studies mainly in United States.
Keywords: Global Leader, Principle Of Organization, Contingency Approach, Japanese Companies, Globalization
Up to this Point, Is Claiming Cultural Authenticity Still Important amid Thailand’s Rapid Growth of Mass Tourism?
The success of mass tourism in quantitative terms has brought the country to the position where it is being admired globally. Beautiful natural resources, stunning cultural attractions and a wide range of affordable foods and services can steadily increase international arrival numbers especially from Europe and Asia. However, this situation has led to the perception of the decline in cultural authenticity in tourism contexts for decades. In certain areas of the country, especially the north where cultural clichés are often exhibited rather than the coastal areas in the south, the showcases of cultural authenticity can be considered as local community exploitation or the lack of moral value. This study contributes to tourism planning and policy making on how Thailand should shift its tourism directions without overly or falsely claiming its cultural authenticity.
Keywords: Authenticity, Tourism, Thailand
IFRS 9 Impact on Bank Landing Policy and Structural Risk Management
International Financial Reporting Standard 9 (IFRS 9) introduced new principles of classification and measurement of financial instruments, financial assets impairment management, and hedging accounting. In initial recognition and accounting classification of financial assets in amortized costs category, fair value through other comprehensive income, or fair value through profit or loss, IFRS 9 implemented new solely payments of principal and interest (SPPI) test and related benchmark test. Bank landing policy has to take in consideration the IFRS 9 principles of initial recognition of loan contract. In case that the loan contract has terms that give cash flows like solely payments of principal and interest, than the financial assets is consistent with the base landing agreement and can be measured by amortized costs. Otherwise, the loan has to be fair valued with influence on bank structural risk position. Bank landing policy has to be adjusted with banking book management to avoid structural risk hedging costs. If contractual cash flows are not solely payments of principal and interest it is necessary to make a business model test. Business lines in banking firm have to be introduced to IFRS 9 request in product supply definition that is in compliance with bank risk policy.
Keywords: IFRS9, Financial Assets, Fair Value, Lending Policy, Structural Risk
The Impact of Entrepreneurial Marketing Dimensions on the Organizational Performance within Saudi SMEs
Nehal Marrai Rashad
In attempts to merge two distinct academic fields, Entrepreneurship and Marketing, the term Entrepreneurial Marketing (EM) is applied to describe the marketing processes of firms pursuing their opportunities within uncertain marketing circumstances, and most often under constrained resource conditions. However, in Saudi Arabia, Small and Medium Enterprises (SMEs) play an important role in economic development and income growth. The purpose of the study is to identify the effect of applying (EM) dimensions on the organizational performance, these indicators are, proactive orientation, calculated risk taking, innovativeness, opportunity focus, resources leveraging, costumer intensity, and value creation. The dimensions of EM are tested with data collected through survey questionnaires administered by e-mail and online questionnaire comprising a sample of 50 managers and owners of SMEs in Jeddah. Analysis of results employing factor analysis revealed that dimensions of EM were demonstrated within the sample of SMEs in Jeddah. Whereas, regression analysis results revealed that opportunity focused, calculated risk taken, and value creation dimensions of EM are positively related with performance. Giving that, this study offers several recommendations, Saudi entrepreneurs should invest their efforts to continuously identify new ways to select opportunities, besides, since they are risk takers, they could dedicate more effort and time in planning and considering the risk management approaches. In addition, a combination of the other dimensions should be adapted to further enhance the value created for customers.
Keywords: Entrepreneurship, Marketing, Small and Medium Enterprises, Entrepreneurial Marketing Dimensions
Aksemsettin Mah. Kocasinan Cad.
Erenoglu Is Merkezi
Fatih – Istanbul, TURKEY
Email: [email protected]
This work is licensed under a Creative Commons Attribution 4.0 International License.